Sudbury Contact intersects gold

Exploration in Canada is both a strange and exciting business. Proof of this statement can be seen from the results of a program released by Sudbury Contact Mines (TSE) on property north of Kirkland Lake, Ont.

The property was being explored for diamonds following the discovery of a kimberlitic boulder. Sudbury Contact began to search for the up-ice kimberlitic bedrock source of the boulder. Having found what the company thought was the area, a program of reverse circulation drilling was initiated where the overburden is more than 325 ft. deep. Several holes were drilled through the overburden and continued 4 ft. into bedrock.

Analyses of the bedrock chips from two holes did not find kimberlite with indicator minerals or diamonds — instead, they uncovered low-grade gold values.

Sudbury Contact staked additional ground and began an induced polarization (IP) survey on the original property.

Results of the survey indicated there was a long east-west-trending anomaly running parallel to, but three miles north of, the Kirkland Lake break. Following the survey, a drill was brought onto the property. Results from the first phase of drilling of this parallel structure are encouraging.

The discovery hole intersected 0.13 oz. gold per ton over 9.8 ft. The third hole, 1,300 ft. west of the first hole, intersected 0.04 oz. over 26 ft. In addition, the fourth hole mid-way between these two holes intersected 0.17 oz. over 46 ft. (0.11 oz. cut to 1 oz.), including a section averaging 0.24 oz. (0.15 oz. cut to 1 oz.) over 0.24 oz. (0.15 oz. cut to 1 oz.) over 33 ft. All results were said to be within 300 ft. of the surface.

Two stepout holes drilled 650 ft. and 2,300 ft. east, respectively, of the discovery hole encountered pyritic mineralization. Sudbury Contact’s property is about two miles long, with the stratigraphic horizon extending at least 4,000 ft.

News of the reported find sent Sudbury Contact’s stock soaring. At presstime the stock closed at $3.50, up $1 for the day on volume of 124,000 shares. A second program, consisting of IP and further drilling, is scheduled to start in the new year.

Meanwhile, seven shallow holes were drilled on the company’s Catherine Twp. gold property. Prospecting and mapping outlined a quartz-carbonate alteration zone over 1,000 ft. A short hole undercut the main showing 150 ft. below surface, returning 0.15 oz. Another three stepout holes have been completed and results are expected soon.